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Cloud adoption accelerates among banks with unique strategies

The financial services industry is undergoing a massive shift to cloud, but the challenging technology transition for incumbents requires a strategic rethink of architecture, data, people and processes.

February 17, 2022 | Neeti Aggarwal
  • Competition posed by challenger banks accelerate drive for cloud adoption
  • Multi-cloud and hybrid approach to address IT risk
  • Skill gap remains a challenge

The winds of change across financial services industry have become more pronounced. New cloud native technology players and digital banks have entered the market and scaled with speed. Customers demand more digital, real-time and intelligent service from their banks. Future success of banks rests on their ability to innovate services with agility, scale with speed and lower their operating costs. Banks feel the urgent need to become data-driven but the scalability of emerging technologies such as artificial intelligence (AI) is dependent on the foundation of cloud-based infrastructure. These have pushed banks to strategically evaluate the technology they need to move forward, a move further accelerated during the pandemic.

For incumbents that have spent millions and billions in on-premises technology and skills, the migration to cloud-based infrastructure is not an easy decision or a painless transition. There is ‘no one size fits all’ cloud strategy, yet it is not a matter of ‘if’ but how quickly banks can undertake this transition.

What is driving the adoption of cloud in banks

The growing competition from new entrants such as challenger banks and fintechs has evolved customer expectations from banks. Incumbent banks need to stay disruptive and relevant for their customers. The ability to utilise data effectively to differentiate and personalise services has become critical and pushed banks to modernise their core technology foundation towards scalable cloud-based infrastructure. The urgent need for remote operations and exponential growth in digital transactions during the pandemic further accelerated this.

“We're seeing a few key themes in financial services in Southeast Asia. There is definitely an acceler...

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Keywords:Financial Services, Risk, Digitalisation, Tokenisation